Head-To-Head Review: Healthcare Realty Trust (NYSE:HR) and Iron Mountain (NYSE:IRM)

Healthcare Realty Trust (NYSE:HR) and Iron Mountain (NYSE:IRM) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Healthcare Realty Trust and Iron Mountain, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	1	3	1	0	2.00
Iron Mountain	0	0	6	1	3.14

Healthcare Realty Trust presently has a consensus price target of $17.20, indicating a potential upside of 2.53%. Iron Mountain has a consensus price target of $127.67, indicating a potential upside of 51.61%. Given Iron Mountain’s stronger consensus rating and higher probable upside, analysts plainly believe Iron Mountain is more favorable than Healthcare Realty Trust.

Dividends

Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 7.4%. Iron Mountain pays an annual dividend of $3.14 per share and has a dividend yield of 3.7%. Healthcare Realty Trust pays out -69.7% of its earnings in the form of a dividend. Iron Mountain pays out 514.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

80.1% of Iron Mountain shares are owned by institutional investors. 0.6% of Healthcare Realty Trust shares are owned by insiders. Comparatively, 2.1% of Iron Mountain shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Healthcare Realty Trust and Iron Mountain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-51.60%	-11.20%	-5.69%
Iron Mountain	2.95%	-401.83%	2.87%

Earnings and Valuation

This table compares Healthcare Realty Trust and Iron Mountain”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.25 billion	4.71	-$278.26 million	($1.78)	-9.42
Iron Mountain	$6.15 billion	4.02	$180.16 million	$0.61	138.05

Iron Mountain has higher revenue and earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Iron Mountain, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Healthcare Realty Trust has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Iron Mountain has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Summary

Iron Mountain beats Healthcare Realty Trust on 13 of the 17 factors compared between the two stocks.

About Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Founded in 1951 and trusted by more than 240,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers’ work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.